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India's demonetisation of Rs. 500 and Rs. 1000 notes

newsite.thehindu.com

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Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#151

Post by Retric »

7Z7 wrote: post #124
Retric wrote: post #70

Earlier quoted context omitted.

> "but the Rs 1000 note was just worth $15USD" So, I think he agrees with you and is just pointing out without the 500 or 1000 note's the 100 is only worth $1.5USD.

Maybe I'm misunderstanding, but there is no "without". The new Rs 500 and Rs 2000 notes will cover the difference.

The new bills have yet to hit the streets, and the old bills don't count as long term stores of value. So, for a little while India is arguably 'without' Rs 500 and Rs 2000 notes.

Basically, they are no longer bills but checks with expiration dates.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#152

Post by spikengineer »

sandeshd wrote: post #98
csomar wrote: post #64

Earlier quoted context omitted.

Changing $100 notes to $200 notes will open a new black market for converting 2 x $100 notes to $200. I think just removing the $100 note is safer.

2K notes are not just piece of paper, it does have NGC (Nano GPS Chip) by which income tax department can track the location and exact amount have stashed nearby that location. So sending that amount to some other country or keeping that money underground will be the most foolish thing one can do.

Not possible and also useless. Govt has not made any statement about it either.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#153

Post by 1024core »

Scirra_Tom wrote: post #132
slg wrote: post #119

Earlier quoted context omitted.

The grandparent comment wasn't comparing arbitrary units, they were comparing the units of each country's currency denominations. The largest active legal tender in the US is worth $100 while the largest in India was worth $15 (now will be $30). I think it is a fair assumption that those numbers aren't arbitrary and that some thought went into choosing those denominations. That gives you insight into the economies of…

Largest banknote in UK is £50, largest in EU is €500. That does not imply a staggering difference in purchasing power between £ and €.

I guess what the OP meant was that the difference in what the highest note can buy is staggering.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#154

Post by dingo_bat »

joosters wrote: post #3

Could someone fix the title, please? The notes aren't being made illegal, they are just ceasing to be legal tender. There's a big difference! Right now, the title is clickbait.

But they are illegal to use for any monetary transaction. I read it like that.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#155

Post by pavanred »

abraham_s wrote: post #134

500 and 1000 Ruppee note cease to be legal tender as of today midnight. Everyone who has them can get it exchanged for 100 ruppee notes in banks,post offices etc until Dec 31. You need to provide a valid id to do an exchange, which means that the transaction will be traceable and Income Tax department (Indian version of IRS) will be matching them to declared income. ATM and banks are closed for the next couple of day…

How do you invest in land/gold without paying taxes? And, one is required to have the PAN (Permanent Account Number) to transact in gold/land, no?

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#156

Post by somethingsright »

drl42 wrote: post #45
uiri wrote: post #35

Earlier quoted context omitted.

1 USD is ~Rs 66. That is a staggering difference in purchasing power! I would guess that the only note in the US with a similar reputation which is still issued would be the $100. Notes larger than this ($500, $1000, $5000, and $10 000) have been discontinued since 1946 and actively destroyed by the Federal Reserve since 1969. Isn't there a concern that those who were using these high denomination notes just switchin…

They are introducing new Rs 500 and Rs 2000 notes and they are going to control the circulation of these new notes

The circulation of new notes will have to be controlled because there will be a limited notes in circulation for some time. The distribution problem has to be solved to ensure everybody have enough notes for daily activities. It would be interesting to see how the notes make it to all the bank branches and ATMs in the next two days and beyond. ATMs are unavailable for 2 days, bank branches for 1 day.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#157

Post by 0x0 »

uiri wrote: post #35
h43k3r wrote: post #6

For international readers: Rs 500 and Rs 1000 are the highest denominations notes in India. Other available denominations are Rs 100, 50, 20, 10. This is such a major move to curb black money in the history of Indian Politics and Economy

1 USD is ~Rs 66. That is a staggering difference in purchasing power! I would guess that the only note in the US with a similar reputation which is still issued would be the $100. Notes larger than this ($500, $1000, $5000, and $10 000) have been discontinued since 1946 and actively destroyed by the Federal Reserve since 1969. Isn't there a concern that those who were using these high denomination notes just switchin…

"Purchasing power" does not mean "value of banknotes per kilogram", nor does it mean "value per unit of currency"

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#158

Post by leafee »

atxcrab wrote: post #136
leafee wrote: post #65

Earlier quoted context omitted.

> This is a strategy copied from China. They did same in 1970-80's. Citation needed.

India did this once already . 1978 - all denominations gt than 100 INR were demonetised

That does not sound like a secret plan sprung on the people with surprise.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#159

Post by somethingsright »

billy8988 wrote: post #28

It is hardly going to fix the black money problem. Rich people have so many employees to do the bank run for them. Within the next month, you will see a huge spike in real estate market. People with black money will dump it in the real estate market. (If you are not an Indian, this is how it works. You buy an apartment/home/building for the amount X. But you declare it to the government that you bought it for X/10. T…

On the contrary, real estate market will stop for next couple of months. Cash is a big component of the price for the seller. And the current cash is useless as it has to be deposited in banks and declared, thus removing the whole rationale for taking cash. The seller is already paying tax on the non-cash portion.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#160

Post by [deleted] »

1024core wrote: post #153
Scirra_Tom wrote: post #132

Earlier quoted context omitted.

Largest banknote in UK is £50, largest in EU is €500. That does not imply a staggering difference in purchasing power between £ and €.

I guess what the OP meant was that the difference in what the highest note can buy is staggering.

[deleted]
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